Sales Promotion of Coca-cola
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PROJECT REPORT ON
“SALES PROMOTION OF COCA-COLA” Submitted For Partial Fulfillment of Award Of “Masters of Business Administration”
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INTRODUCTION OF THE TOPIC Coca-cola enjoys the privilege of being the largest selling soft drink company in the world. Its products Coke, Fanta, Limca, Thums-up, Maza, Sprite and Cold tea are well known world wide : and are regarded as top most brands in their respective flavor segment. Soft drink industry is blossoming in India with continuously increasingly growth rate that swells more every year. In S.G.A. (Sales Generating Assets) Coca-cola is leading the market in providing the maximum number of cooling equipment i.e. visi coolers, family fridges and E.B.C. (Electronic Bottle Cooler) to their retailer. Coco-cola is also ahead of Pepsi in providing signage's i.e. glow signs and dealers boards tot he retailers. Since the "Good Services" advertising and superior promotional strategies from the basic rules for survival in the market," all the companies are trying to perform their best on the front. Coca-cola is the leader of this front also. It provides better services to it's retailers as compared to its, airs superiors quality advertising and launches better sales promotion schemes into the market. But to maintain the position and to improve it even better, it should continuously improve itself through innovative marketing strategies. Since the market is highly competitive.
The company in order to enhance its sales gives certain Promotional concessions to the dealers and retailers
DISTRIBUTORS The company owns the advertisement costs Expenditure On lifting schemes are given. The company owns umbrellas, Chains and paintings etc..
RETAILERS Free painting. Glow signboard. Refrigerators are provided (on certain terms and conditions). Umbrellas and chains are provides by the company, conditions being good gathering and publicity etc. market schemes are given.
COOLING FACILITIES AT OUTLET: In India 82% soft drink is consumed at outlet and the rest 18% is consumed at home. This requires the soft drink manufacture to provide adequate cooling facilities at the outlet to make the soft drink ready to consumers. Pepsi wants to serve its customers with finished products. The companies supplies final product to the retailers and it is the retail out let where the product is transformed into finished product while serving 5
the chilled soft drinks to customers so unshelled Pepsi is final product and chilled Pepsi available, at the retail outlet is the finished products. The company has installed cooling apparatus at the outlet in Viridian territory. The company has bought these coolers from different companies. The capacity of cooler vary from 5 liter to 330 liter most of the model have transparent door which makes the product visible. These modal are called VISI Coolers. The company has also installed deep freezers at large outlets. In these coolers retailers have instruction to keep only Pepsi products.
IMPORTANCE OF PRODUCT DISPLAY: In fast moving consumer goods cold drink is categorized as impulse good are purchase on impulse with out any planning or search effort these good are displayed widely thus news paper, magazines, cold drink, candy drink candy bars are asked at every next counter because shoppers may not eve thought of buying them until they see them. The basic concept of product display comes from vegetable shop all the vegetable are placed separately so that it can be visible to consumer and consumer can see from distance. In the present age of competitions companies aim to attract more people towards itself. To attract the customer every company want to capture the best place available in the shops. They also talked for wide space for maximum play of full range at one place buyer of today is more influenced by what he has been watching every shops whiles shopping. A well-designed outlet attracts more people and people also remember that shop very well out of hundreds of outlet. Such type of outlets strikes the mind of customer very soon remains at the top of the kings also when people see the product in TV., in Newspaper. Magazine they asked about the product to the retailer when they go for shopping and if the same product is displayed in the shop. They are pushed internally 6
to achieve / purchase those products. The summar4y of all this above mentioned comes in one line.
“JO DIKHATA HAI WHO BIKATA HAI ’’
There are three things are must for product display. PRODUCT SUPPLY PRODUCT AVAILABILITY SPACE FOR DISPLAY
INTRODUCTION TO SELLING Over the last 130 years the sales process has been undergoing a transformation all over the world. The early image of the traveling salesman has given way to the high technology consultant of today. However, the fundamental value contribution continues to the ability of the sales person to educate the customer on new offerings and help them negotiate through the maze of products that claim to satisfy their requirements and identify the one that meets their needs.. Today’s highly competitive environment requires that sales do more than just to sell products. They need to have indepth knowledge of how their products integrate with others solutions to give the customer a seamless user experience. In addition, they also need a good idea of the price band .They would be allowed to negotiate in so as to help close deals quicker. This necessitates the implementation of advanced information management system. That makes information available to the frontlines quickly and easily.
SALES PROCESS DEFINED Sales process refers to a sequential series of actions by the sales person that leads towards the customers taking desired actions and ends with a follow up ensuring purchase satisfaction. It led to successful completion and close of sales This entire process helps an agent advisor to make sales easy. It is science as well as an art. Since it deals with people who are very subjective in nature, so the entire frame of process is to be dealt with flexibility as per the situation. Sales process starts with prospecting and ends up in follow up. So the entire steps in the process are discussed in details below:-
SELLING PROCESS Presentation Trial close Determine objective Meet objectives Trial close Follow up Approach Close Prospecting Preapproach
PROSPECTING A prospect is a qualified person or organization that has potential to buy your product or a service prospecting is the lifeblood of sales because it defines potential customer. There are two reasons a salesperson must look constantly for new prospects. 1. To increase sales 2. To replace customer that will be lost overtime.
Prospecting is the process of acquiring basic demographic knowledge of potential customer for product lists that are available from many vendors break down business in a given geography by industry revenue and number of employees.
WHERE TO FIND PROSPECTS Source of prospects can be many and varies or few and similar depending on the services or good sold by the sales person. Naturally person selling different services and goods might not use the same source for prospects. A life insurance salesperson would use personal acquaintances and present customers as source of prospects.
PLANNING A PROSPECTIVE STRATEGY To be successful prospecting requires strategy, prospecting like other activities is a skill that can be constantly improved by a dedicated sales person. A successful salesperson continually evaluate prospecting methods comparing results and records will the mode of prospecting used in pursuit of a prospecting strategy that will result in most effective contact rate. 10
Prospecting Methods 1. Prospecting 2. Cold canvassing 3. Endless chain-customer referrals 4. Orphan customer 5. Telephone and Telemarketing 6. Networking
The most recent advancement in prospecting is the use of the Internet to find potential buyers this is called E-Prospecting and it is a fast and easy way to find information about individuals or business by using technology. Cold Canvassing The cold prospecting method is based on the law of averages e.g.If paste experiences reveals that one person out of 10 will buy a product then 50 sales call could result in 5 sales Thus the sales person contact in person by phone and\or by mail as many leads as possible.
ENDLESS CHAIN –CUSTOMER REFERRALS Cold calling is tough contacting strangers day after day is challenging even for the most motivated individuals. First satisfied customers are likely to buy again from the salesperson that is why the first stressed the important of building a relationship with the customer. It is critical to your success.
Second the customers often refers the salesperson to someone she knows this is known as endless chain referral method of prospecting this is a very effective method for finding customers and customers referrals are the two best sources of future sales with repeat sales from customer and being better. A referral is a person or organizations recommended to a salesperson by someone who feels that this person or organizations and benefit from him or his product.
ORPHAN CUSTOMER Sales people often leave their employer to take other jobs. When they do their customers are orphaned. This orphaned are great prospects. A sales person should quickly contact such customers to begin developing relationship you can turn orphans into a lead generating Goldman.
TELEPHONE AND TELEMARKETING Like direct marketing the use of telephone prospecting to contact a large number of prospects across a vast area is far less costly than the use of a conversing sales force though usually more costly. Telemarketing is a marketing communication system using telecommunication system using telecommunication techniques and trained personnel to conduct planned measurable marketing directed at targeted groups of customers.
NETWORKING For many prospecting never ends they are always on the lookout for customer everyone they meet may be a prospect or that person may provide a name that could lead to a sales. The term given to making and using contacts are called networking.
When the prospect initiates the contact –Prospects will visit you during normal business hours if you have a store or business location .If you do not have a store, they might contact you by phone, mail, email or through your Website to request information, ask questions and\or to make a purchase .Prospects might also call at odd hours out when you’re open or where your store is located. Be sure your answering machine message, answering service or Website answers these questions . When you initiate the contact –One of the most common initial contacts is a “cold call” conducted by phone or in person. A cold call refers to a contact made with prospects that have not indicated they desire the call. It’s obviously much more efficient – and most say more successful –to conduct cold calls on the telephone rather than to drive around town, but you might have a reason that warrants an impersonal cold call on occasion.
These tips may help you turn cold calls into warm prospects. o First, determine your objective and the purpose of your call. Your purpose may be to make an appointment, to inform, to question, to talk to a certain person, to sell etc. Additionally, determine if you want to close the sale on the first call or simply pave the way for a later call or sales presentation.
o Try to do a little homework before the call. If you know someone who may have insight or information about the prospect, call him or her.
o Send a fax or mail some information prior to the cold call. Reference the information in the call, but you don’t open with. ‘Did you get the information I sent?” This allows the prospect to simply say ‘No” just to get you off the phone. Instead, try something like, “I sent you some information by fax yesterday, I’m following up to provide additional information. o When you’re ready to make the call, make sure you have all the materials you need to hand. For example, if the purpose of your call is to make an appointment, have your appointment book open and a working pen or pencil in front of you. o State your purpose quickly- within 15 seconds. o Do ask questions that make interested prospect think. o Make statements that build rapport and confidence. o Use humor – people love to laugh. o Be sincere. o Be friendly – people like to buy from people they like. o Keep your eye on the prize – never lose sight of your objective, regardless of the outcome of the call.
THE SALES PRESENTATION Many sales people feel the most exciting part of the sales process is presenting products or services to prospects. Finally, the vast amount of knowledge one has about his products, services and your company comes into play! To improve the chances of making a sale, one must master threat of giving good sales presentation. An effective presentation method selected should be based on prior knowledge of the customer, your sales call objective , and your customer benefit plan. Because prospects want to know how you and your product will benefit them and the companies they represent , you must show that you have the right to present you product because it has the key benefits for them.Many different sales presentation methods are available.They bdiffer from one another depending on what percentage of the conversation is controlled by the salesperson. The salesperson usually does most of the talking in more buyer –seller interaction in the less structured methods.
MEMORIZED SALESPRESENTATION In the memorized presentation or stimulus response method the salesperson does 80 to 90 percent of the talking, with each customer receiving the same sales pitch. This method ensures a well-planned presentation and is good for certain non technical products. It is also somewhat inflexible allowing little prospects participation.
FORMULA PRESENTATION The formula presentation, a persuasive selling presentation, is similar to the first method but it takes the prospects into account by answering questions and handling 15
NEED SATISFACTION PRESENTATION The most challenging and creative form of selling of need-satisfaction selling presentation this flexible method begins by raising questions about what the customer specifically needs. After you are aware of the customers needs, you can then show how your product fit that needs. You must be cautious because many people don’t want to open up to a salesperson.
PROBLEM SOLUTION PRESENTATION When selling high complex or technical products like insurance, a problem-solution. Is a good presentation this method involves detailed analysis of the buyers specific needs and problems and the designing of a proposal and presentation to fit these needs. This customized method of problem solution presentation involves a detailed analysis of the buyers specific needs and problems and the designing of a proposal and presentation to fit these needs; this customized method often uses a selling team to present them information to the buyer. In comparing the four presentation methods there is no one best method. Each one must be tailored to meet the particular characteristics of a specific selling situation or environment.
DETERMINE OBJECTIONS During the sales process you’ll probably meet a familiar obstacle: the objection. Objections are prospects statements about why they don’t plan to buy your product or service. It may be a statement such as “I don’t need that service right now”. Or “I already buy those products from ABC Company”. Don’t be afraid of an objection its simply part of the sales process. In fact objections oftentimes are a signal that the sale is progressing and you are getting closer to “yes”. Objections are oftentimes a prospects way of saying: “I am not convinced yet ; but I could be!” Anticipate objections. Rehearse answers to standard objections. learn to ask questions of prospects to drill down to their real objections. People want to buy but they do not want to misled, so the often ask questions or raise clearly respond to your prospects objections whenever they arise. Sales objections indicate a prospects opposition or resistance to the information or request of the sales person. Basic points to consider in meeting are to 1. plan for them 2. anticipate and forestall 3. handle them as they arise 4. listen to what is said 5. respond warmly and positively 6. make sure you understand 7. Respond by the using an effective communication technique. 17
Before you can successfully meet objections determine if the prospects response to your statement or close is a request for more information, a condition of the sale or an objection. If it is real objection determine whether it is a major or minor. Despond to it by
using a trail close and if you have answered it successfully, continue your presentation based on where you are in the sales presentation. Plan for objections are classified as •
Develop several techniques to help overcome each type of objections such as stalling the objection, turning the objection into benefit, asking the question to smoke out hidden objections, denying the objections through appropriate illustrations and thus outweighing the objection drawbacks and developing proof statements that answer the objection. Welcome prospects objections. They help to determine the right back to uncover prospect’s need and if they believe the product which will fulfill their needs. Valid objections are beneficial for the agent advisor and the customer. A true objection reveals the customer’s need, which allows a salesperson to demonstrate a suitable product to the customer according to their requirements. Sometimes objection or refusal by the customer also shows the incapability of the agent advisor in context of presentation or product knowledge. Finally handling the customer in difficult circumstances make selling a skill that a person can improve constantly through experience. Overtime a salesperson can learn how to handle every conceivable product objection – tactfully, honestly and to the customer’s benefit.
There are a few proven techniques for overcoming objections. Remember to treat every objection with respect and diplomacy. Employ the “yes, but” technique. Agree with your customers (the yes) and then offer them new information (the but). •
Questions prospects when they make statements about why they won’t buy or what they don’t like about your product. Ask “why” they feel so. This will help you get to the root cause of their concern.
Restate the objection so the customer can hear it. This tends to reduce the magnitude of an objection or allows prospects to modify their statement to get closer to the true objection.
Tactfully respond directly to the customer’s statement. Person might even contradict in their statement but still agent advisor requires to be more alert and conscious while replying and handling customer.
CLOSING THE SALES Although one should never be shy about asking for the business, as prospects will probably give some signals when they are ready to become customer.
DIFFICULTIES WITH CLOSING Closing the sale is the easiest part of the presentation. It is a natural wrap-up to the sales presentation because of solidification of the details of the purchase agreement. Yet sales people sometimes have difficulty in closing the sale for several reasons. One basic reason for the failure in this step is the lack of confidence on part of an agent advisor to close the sale by taking an order. This may be because of mental block faced earlier due failure in closing the sales. Agent advisor may give proper presentation but hesitate in asking for the cheque. The seller must overcome this fear of closing to become successful.
Secondly, sales person often determine that the prospect does not need the product and the thus they should not buy. So they do not ask the prospect to buy. The sales person should remember that it is the prospect’s decision and responsibility whether or not to buy. So it would be better not to have perception regarding customer’s mind.
ESSENTIALS OF CLOSIG SALES While there are many factors to consider on closing the sale, the following items are essentials if one want to materialize their sale : •
Be clear and precise to make customer understand
Always present complete story to ensure better understanding
Tailor closing to prospect. 80% of the customer do respond to a standard close. It is other 20 % of prospective customers for whom agent advisor needs to struggle for. For those customer give all the facts requested, give the egotistical customer praise, to lead the indecisive customer and to slow down for a slow thinker.
Familiarize with the following readiness signals: •
Question about appointment such as, “how soon or when you are available?”
Specific questions about products, rates or statement about affordability.
Queries about features, options, quality, guarantees or warranties.
Positive questions about business
Asking for something to be repeated
Customer making statements about problems with previous vendors, they might be seeking reassurance from the agent advisor that they wont pose the same problem for them
Questions regarding follow-up service or other products of the company
Asking about number of other satisfied customers
FOLLOW AND SERVICE AFTER THE SALES
High – performing salespeople can convert follow – up and service situation into sales Some sales people believe that follow – up after the sale is just as important as making the sale. That’s when your relationship with a customer really takes hold. Building long – term relationship with customers allows you to leverage or make additional use of your initial investment of time and money spent selling to that customer. In other words, you don’t have to spend time prospecting, qualifying and conducting other pre – sale activities for that particular customer again. Secondly you can get referrals from that customer for your future business which will help you to grow and prosper. The follow up flow chart has been designed below:FOLLOW UP CHART Prospecting Preapproach Approach Presentation Trial Close Determine Objections Meet Objections Trial Close
Close Follow - Up
Sales people increase sales by obtaining new customers and selling more product to present customers. Customer’s referrals are the best way to find new prospects. Thus, it’s important to provide excellent service and follow – up to customers. By building a relationship and partnership, you can provide a high level of customer service. When you deliver service, customers are satisfied and continue to buy, this results in retention and loyalty. Providing service to customers is important in all types of selling. Follow – up and services create goodwill between salesperson and customers that allows the sales person to penetrate or work throughout the customer’s organization. Account penetration helps the sales person to improve the services of accounts and uncovers its needs and problems. It is said that: “There’s no better advertising than a satisfied customer.” Good follow – up and after sales service will: •
Establish and maintain your good reputation.
Build goodwill among customers and in the community.
And most importantly, generate repeat and referral business. Finally, a few more tips from the sales pros:
Continuously improve your sales skills, learn from others and stay open to new ideas.
Be sincere about your desire to help the prospect first – make money your secondary objective. This attitude will come through in every encounter and will help you build long – term relationships.
Make yourself a value – added resource. Become indispensable. Make industry news updates, creative ideas, and business advice part off the services you offer.
Be direct with your communication. Beating around the bush only frustrates people. Answer all questions. Never patronize. 22
Enclose your business card with every letter and note.
Thank people who refer prospects to you. If the referral results in business.
Give your customers your home phone number. Your phone will seldom ring, but the gesture will make a great impression.
Never lie. Don’t badmouth the competition or say negative things about their clients
DISTRIBUTION STARTEGY: In a country of more than 1 billion people, there is a vast untapped potential waiting to be mined. The key to reach them is to develop sound distribution channels. These channels are responsible for making the differences in terms of quality of advice for choice of product, servicing of policy post sales and settlement of claims. From the company’s point of view, the channels are the first underwriters. The traditional distribution model comprises:
CAPTIVE/TIED AGENTS: These are agents who sell policies of only one Insurance Company which employs them.
INDEPENDENT AGENTS: These individual agents who represent several companies and place Insurance policies for their clients with the company that offers the best rates and coverage.
CORPORATE AGENTS: Firms selling polices of several Insurance Companies are called Corporate Agents. An amendment in October 2002, to the Act of Corporate Agents, recognized banks, brokers and other entities like cooperatives, NGOs and panchayats as intermediaries who can sell Insurance for the commission. While under the old laws the only Corporate Agent that was recognized was a firm where all directors were Insurance Agents, the new law allows virtually any entity to sell Insurance. The measure will give a big 23
boost to the private insurers in the country, who have been facing a distribution conundrum.
The various channels that can be used under the purview of the amendments are: BANKS: Bank assurance in its simplest form is the distribution of Insurance products through a bank’s distribution channel. Banks can straightway leverage their existing capabilities in terms of database and face-to-face contacts. Rural areas and small towns offer a huge potential for the Insurance companies.
This potential is largely untapped due to inadequate distribution
channel. The key to market access in these areas can be: o
The Co-operative societies and village panchayats can act, as ‘Corporate Agents’ to sell Insurance product most specific to the communities needs. NGO: This channel could be used to increase a awareness about the insurance products. As many NGOs have strong presence and a positive reputation in rural areas they can prove to be an effective channel. GROUP CHANNELS: 1. WORKSITE GROUPS: Worksite marketing is the selling of voluntary (employee-paid) Insurance and financial products at the worksite. The products may be on either an individual or a group platform and are usually pays through periodic payroll deductions.
AFFINITY GROUPS: Affinity groups are homogenous groups. The advantage of selling Insurance to affinity groups is that there is
likelihood of lasting.
3. PERSONAL ADVISORS such as accountants, lawyers, doctors and tax planners. 4. MUTUAL FUNDS: Mutual Funds could capitalize on their existing customer bases to sell policies. 5. HOSPITALS: A tie up with hospital chains for selling health insurance can be an effective channel to reach a wide base of customers.
PERSONAL SELLING Directly paid, personal communication that attempts to inform and persuade prospects and customer earned approach. Stimulus response formula selling A-attention I-interest D-desire A-action The AIDA approach could be effective when prospects are in stimulus situation and the product can be sold using the source basic presentation. E.g. in route sales the salesperson calls on the same customer for each and every work. In some situation however approaches can be seen by a prospect as pushy. Focus is such an approach in making a presentation that it results I sales rather than focusing on the special needs on the prospects. 25
ATTENTION From the moment conversation is started between seller and customer, capturing of customer’s attention is required. This may be difficult at times because of barrier in communication, pressing demands on the prospect’s time, or lack of interest. Careful planning should be done in order to handle all the obstacles. Since attention getters have only a temporary effect so discuss the product in such a way that the prospect’s attention can be sustained.
INTEREST Before meeting with prospects, determine their important buying motives. These motives can be used in capturing interest. If not, you may have to determine them at the beginning of your presentation by asking several questions which is also called fact finding. Prospects enter the interest stage if they listen and enter into a discussion with salesperson which can be inferred when customer strive to like product benefits to his needs. If this link is completed, prospects usually express a desire for the product.
KINDLING DESIRE The third goal is to kindle the prospect’s desire to the ready to buy the product. The salesperson must keep the conversation running along the main line towards the sales. The development of sales obstacles, the prospect’s objections, external interruptions and remarks can sidetrack the presentation during this phase. Obstacles must be faced and the ways should be found to get around them. Objections need answering to the prospects satisfaction. Times saved and chance of making a sale can be improved if queries are anticipated and answered before the prospect raises them. External interruptions cause breakdown in the presentation when the conversation resumes. Good sales people summarize everything what has been presented earlier. Digressive remarks generally should be disposed off tactfully. But sometimes distracting digression is best handled bluntly, ex. “well there is all very interesting but it would be better to get back to the subject.”
INDUCING ACTIONS If the presentation has been perfect, the prospect is ready to act – that is to buy however, buy is not automatic and as a rule must be induced. Experienced sales personnel rarely try to close until they are ensured that prospect is fully convinced of the merits of the proposition. Thus it is up to the sales person to sense to serve when close on a minor point and trick to close are used to test the prospect’s reaction. Some sales personnel never ask for definite “yes” or “no” for fear of getting answer as “no” from which they cant retreat, but it is better to ask for order straight forwardly. Most prospects find it easier to slide away from hints than from frank request for an order. So the agent advisor should keep in mind all the things and go through all the process of selling very carefully to covert the prospect into the customer.
FUTURE OF RETAIL IN AGRA (FROM SOFT DRINK PERSPECTIVE) Coca Cola should look beyond traditional channel of distribution for instance. Coke should try to spread itself booths. Barber shops to saloons education institutions to cinema halls and theatres. The retailers are turning less specified in cities like AGRA even chemists can be tapped for soft drinks. The diffusion of segmental divides may be one of the minor trends that will be seen retail business particularity for FMCG in the coming years. Here are some predictions about the AGRA scenario based on discussion with marketers. The level of service that the market provides the retailer will have to rise instead of visiting a shop once in a season a sales manager will have to drop by saw once in a month. Large stores which manages inventory scientifically will grow in members. The trends will be towards two or three super market chains. Would over price at super market are lower then the usual retail outlets. They sell on cash but buy on credit the same trends will happen here in AGRA for Coca Cola, it is easier to carry on a promotional drive of experiment with displays in a super market. while it may be fine to carry out promotional drive of experiment with displays in a super market. While it may be fine to carry out promotional in one or two super market. The logistic of having in 500 retail outlets isn't the same (the number of retail outlet which stock Coke is around 1000 in AGRA). But super market station will be slow process in AGRA. The retailers will become more brand oriented that company oriented. It may be stocking one brand of Coke and another of Pepsi but coke should try to push all its brands equivalently and this trade push should interviewed with consumers pull produced by advertisements and sales promotions.
ROLE OF SIGNAGE SCHEME, SALES GENERATING ASSETS AND A COMPARATIVE STUDY OF MARKET SHARE RELATED OT THIS Today's advertising plays very important role to attract the consumers, advertising by signage such as Glow Shine Board, Wall painting, Posters and Stickers Boards, Hoarding etc. SINAGE Signage plays an important role in the soft drink market consumer will attract and demand after looking the signage, so signage are (on the shops): Coke
SALES GENERATING ASSETS :- Coca Cola company provides many types of assets such as cooling equipment, etc. COOLING EQUIPMENTS :- Such as Ice Box, Family Fridge, 4 & 7 Crasser Fridge, Electric Bottle Coolers etc. SCHEMES :- Schemes play most important role in sales generation schemes are to attract the customers/consumers and through scheme company increase the purchase power of customers/consumers. There were various types of scheme, which are introduced by the company this year. Such as.
1. Limca le money offer :- Under this scheme prize is given under the crown line and the amount may be from rupee 1 to Rs. 25000. 2. Fanta :- Under this scheme prize is also given under the crown line according to Limca le money offer. 3. Thumbola Scheme :- Under this scheme thumbs line is given in the crown such as : * * * * * 4. Coke scheme: - For Coke Company has started Hrithik, Aishwarya poster/post card/calendars. These all schemes are for consumers. Quality purchase scheme is especially for Dealers. Retailers. Under this scheme company gives extra benefit to dealers if they purchase a large quality. This benefit is in extra work of cold drink such as: If they purchase I create, company gives free 1 to 2 bottle cold drink t retailer. These schemes are periodical or general schemes (regularly).
Last year Coca Cola company give various types of benefit to customers such as: 1.
One purchase of 30 crate they get writst watch 30
One purchase of 50 crate they get walkman
One purchase of 80 crate they get camera
customer/consumers to increase their sales. So we can say easily that schemes have play an important role generation in refilled glass bottle segment.
SCOPE OF THE STUDY 32
Diagnosis of the current situation or problem based on collected information. Clearly identify the competitive strength and weaknesses. Constant analysis of what is happening in the market place. High light the company's strength with market opportunity by outlining objective for product and market development & devising strategies and tactics to achieve them. Looking out continuously for threats to achievements of those plans. Monitoring the progress of the strategy implementation after getting feedback from the retailers it is always possible for companies to exploits market opportunities to the best possible extent. So the basic aim is to achieve customer oriented long term strategy.
HISTORY OF SOFT DRINKS HISTORY The history of soft drinks began with the end of the last century. Its history dates back to the civil war in U.S.A. in 1860. At that time people were suffering from many diseases. Problem at that time was how to cure all diseases since no remedy was present at that time. It was a big question for American people. So in 1885 Mr. Jihn Palmwartion, who lived in America, made a drink and registered it as ERENCH WINE COLA. In the beginning this drink was made a drink was made with mixture of cocaine and alcohol but later on it was converted and changed into a soft drink. Now it is named as Coca-Cola. A new brand named Pepsi Cola came in the year 1887.
IN HISTORY OF SOFT DRINKS Around 1984 the first branded soft drink came in the Indian market. This soft drink was named as Gold Spot. Before Coca-Cola entered in the country to dominate the scene in 1950's. Parle Exports Pvt. Ltd. was the first Indian company to introduce a lemon soft drink, this drink was known as Limca and it was introduced in 1970s. However, before this, they had introduced Cola Pepino which was withdrawn in face of tough competition from Coca-Cola. In the year 1977 Coca-Cola left the Indian market and this brought in an opportunity for various Indian companies to show their caliber. At this time a new soft drink was introduced by Parle products and this was named Thumss-up. This was a Coca-Cola drinks which had a brunt sugar color. This drink was introduced with a might "Happy days are here again". As if happy days went away with Coca-Cola. There was another company named Pure Drinks which introduced the soft drink named Cola along with orange and lemon flavour. Just after this may more companies entered the India soft drink market. A soft drink named Double had been introduced by a company Modern bankers. Another company. Mohan Meakins also name with a soft drink named Marry & Puck up. Dedowell came with thrill Rush and Sprint.
Previously there was no competition in the Indian soft drink market but with all these companies coming in the Indian, market a huge competition was taking place with high voltage advertisement. But in the year 1988 Pepsi was given permission to sell its soft drinks in the Indian market by the government of India. Coca-Cola also came back 1993.
COMPANY'S PROFILE History :- The birth of Coca-Cola dates back to early 19the century. It was on 1886, when John Styth Pemberton first introduced the refreshing the taste of CocaCola in Atlanta Georgia. Unaware the pharmacist concocted Caramet coloured syrup in three legged brass kettle in his back yard & made available a glass of Coca-Cola available in cents. Frank M. Robinson contributing to the histories value of the Pombortems action name it coca-cola penning down those letters in a style that was to become the highest value of the Probortems actions name it coca-cola penning down those letters in a style that was to become the highest value trademark on Earth. The white on red flow of coca-cola corporation is worth 16.2 billion (Rs. 56700 Crore) it regains 46% of global soft drink market. Pemberton sold Coca-Cola to Asha. G.Candler as Atlanta druggist for $2300 in 1891. He combined it with four other companies and formed coca-cola which was initial stock of $100000 coca-cola was registered at the US patent office in 1893 from 1894, it was bottled and sole by a Mississipi merchant by 1899 Coca-Cola was neomgnpttidamd sold on a regular basis under a region wise franchising system by now Pepsi Cola company came up as of its major competitor system by now Pepsi Cola company came up as one of its major competitor CocaCola bottling plant came up in Chattanooga Tennessee and Atlanta in 1900 By the 1920, there came in to Existence around 1000 Bottling Plant.
The company gained now visit when it was a acquired by Robert woodruff in 1919 for $2.5 million. He brought in motivation like six bottle carry home cartoon advertising and association of Coca-Cola with sports events. During world war IInd Coca-Cola was sold to soldiers for 5 cents per bottle by 1950$ woodruff built around 64 overseas bottling plants. In 1960 a new aerated drink fanta, appeared on the shelves of market while fanta was being sold out in market. Coca-Cola Corporation bought minute maid corporation, which in 1967 was combined with dunchans foods to pave was for CocaCola foods, Later Sprite, a lemon drink was launched in US in 1961 Tab a one calorie cola in 1963 and fresco, a low calorie citrus drink was launched in 1966. In 1975 the company launched Georgia canned coffee in Japan. The U.S. soft drink with Pepsi trying to bap new generation. In 1982 co. launched Diet. Coca-Cola for health conscious drinkers. It had low calorie content but same taste. In 1985 was introduced a new cherry coke, this year is better remembered for a new coke. It was launched with a new formula to Coke preparation having a sweeter taste. It proved to be a very big blunder in history of Coke, because the consumer craved for the same classic taste.
In 1991 coke decided on more creative advertising so Coke split up its 200. Coke set fort in India with a turnover of $16bnh. Its total investment in India was Rs. 25 Crore. Now global soft drink giant Coca Cola is all set to jump $800 4million app. to further strengthen its position as market. This worth of Coke is a part of whole business which adds the size of their combined business up to more than Rs. 5500 Crore. The accumulate losses Of the both company in soft drink business are estimated to be over Rs. 800 crore. Coke is mainly a franchise driven operation with company supplying its soft drink concentrating that secret portion to its bottles around the world. Coke commands a total of 53 franchise amassing crores worth of investment in India. The Coke has made a target to achievement that by selling I million cases in 10 yrs up to the year of 2005 Coke is bullish on India. The reason is that it's an emerging market which means low consumption coupled with big population numbers that adds up to high potential demand. Coke is continuing to stay with its multi brand strategy as it enhances the company's ability leverage self space at the retail out let it also gives flexibility to offer price off. On brands other than its lead ones. Coke's dual brand approach will extend lemon flavour too since it plants to introduce fanta lemon shortly after the cans hit the market.
INTRODUCTION ______________________________________________ Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.
A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's
requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct
distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March) The FMCG sector consists of the following categories:
Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.
Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.
beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur
Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB
BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
FIGURE 1: BEVERAGE INDUSTRY IN INDIA
The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: •
Alcoholic, non-alcoholic and sports beverages
Natural and Synthetic beverages
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: •
The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption
stimulation, refreshment, well-being or prestige relevant to the category. •
Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.
PRODUCT PROFILE The product of Coca Cola consists of following brands which have met with reasonably good success. These products are. 1. COKE 2. THUMS-UP 3. LIMCA 4. FANTA 5. MAAZA 6. KINLEY SODA 7. SPRITE 8. KINLEY MINERAL WATER Various quantities are as follows:Coke 200ml 300ml 500ml l ltr. 1.5 ltr. Can
Thums-up 200ml 300ml 500ml l ltr. 1.5 ltr. Can
Limca 200ml 300ml 500ml l ltr. 1.5 ltr. Can
Fanta 300ml 500ml l ltr. 1.5 ltr.
(330 ml) 45
Kinley 300ml 500ml
Sprite 300ml 500ml 1.5 ltr. 2 ltr. Can
Maza 300 ml 1.5 ltr.
PRODUCT PROFILE OF THE COMPANY There are eight product of COCA COLA named as following 1. COKE 2. THUMS-UP 3. LIMCA 4. FANTA 5. MAAZA 6. KINLEY SODA 7. SPRITE 8. KINLEY MINIRAL WATER These eight products are differing in the taste, flavor and also in colors: 1. Coke:- Coke is considered to be a cola drink. It is generally preferred by all section of consumer. This is a cash brand for the company in term of sales revenue. 2. Thums-Up :- Thums-up is also considered to be a cola drink It is hard in comparison to coke. It is preferred by all sections of consumer but specially to teen agars. It is big source of company to cash its publicity. 3. Limca :- Limca is considered to be lemony in taste, and comes under the category of cloudy lemon because of its color which is similar to that of clouds. It has a yield good revenue. It is generally preferred by children & women. 46
4. Fanta :- Fanta is coming in orange flavor. It is preferred by children & women. 5. Maaza :- Maaza is considered to be juicy soft drink because it contains mango pulp. This soft drinks is preferred by different segment of consumers. 6. Kinley Soda :- This is a soda drinks. It has no color and no flavours. It is generally used with alcohol and used by adults. 7. Sprite :- This brand is available in plain lemon flavour. this brand is generally preferred by students. 8. Kinley Mineral Water :- This is high quality mineral water.
Olympic Commemorative Cans
STRONG STRATEGIES OF PEPSI AS A WHOLE 1.
Local Action Despite being a global brand, Pepsi has built its success on meeting the India
consumers needs. Particularly in terms of making the brand synchronies with localized events and traditions. Instead of harping on its global lineage, it tries to plug into ethnic festivals, use the vernacular indifferent parts of the country and blend into the local fabric. Thus, in Chennai-Pepsi offered free bottles of Pepsi-Cola with idle. In Delhi it linked its brands to Holi, offering sachets of colours with Pepsi Cola.
Empowerment One of the strongest weapons in Pepsi's armory is the flexibility is has
empowered its people. Every manager and salesman has the authority to take whatever steps he, or she feels will make consumers aware of the brand and increase its consumption. It is confirmed by top executive of Pepsi co. India Ltd. Mr. Sinha All that we do is give people budgets within which to work. No question are asked as to what they do. We are performance oriented and for results.
Price Pepsi has consistently wielded its pricing strategy as an invitation sample
aiming to turn trial into addition example. Its 1.5 lt. bottle followed Coke into market place at same price as Coke's but Pepsi also had to contend with the fact that the same price and pocketing to sell competing brands at the same price and discount. So it could not have continued the lower price positioning for long.
Channel Management Pepsi have partners not bottles said by Mr. Sinha Pepsi have a well aligned
bottling network. Its well known COBO (Company owned bottling operations) and FOBO (Franchise owned bottling operation) networks. Cover most of the country adequately : it's the way in which Pepsi co. India strengthens its marketing that gives it an edge. In a bid to raise its market share the Coca Cola company has decided that imitation might just be able to un bottle success for it. Logically Coca Cola's new CEO. Mr. Donald Short has chosen Pepsi co. India as role model.
ADVERTISING AND MARKETING FUNCTION OF COCA COLA IN INDIA Advertisement plays a vital role in the life of a product which increases the demand of present and potential consumers. Coca Cola India launched a new campaign as far as advertisement was concerned featured with the popular cine star Karishma Kapoor and desired to capitalize on the festive season. "Coca Cola Ka Diwali Karishma" in 1999. Additionally a national consumer promotion was also launched with never before prices likes flat, cars, audio system etc. Prior to this to advertisement for grand Coca Cola were being aired one using the song "Khandala "from the movie "Ghulam" both the companies have generated and excellent response of consumers across the country. prior to this Coca Cola in India implemented the most comprehensive advertising marketing and distribution initiative seen industry on the advertising front, the company aired new theme advertisement for brands like Coca Cola, Thums-up, Fanta Limca, Maaza and Kinley. On the marketing front the company implemented seven national consumer promotions, as well as a host of localized sponsorships. On the distribution front, the company expects to add over 10000 retailers to the exiting base of 400000 in the current years. For Coca Cola all previous campaigns focus on the passions of Indian consumers identified by the company, namely cricket, music and food. A part from the eat, sleep, drinks series, four new campaigns were made, one revolving around cricket, two of them campaigns involving teenage aspirations and the fourth aimed to proper volumes of the 1 liter size. The cricket advertisement features Saurav and Srinath, making it the second direct endorsement by the two cricketers. The first was the campaign to publicize the Coca Cola Howzzat promotion. The second advertisement involves teenager interacting ground a Coca Cola vending machine.
The 1 liter packs advertisement feature a kitty party. The fifth involves teenager's aspirations around a party theme. Thums-up's advertisement mixes river rafting with motorcycle skills to give a hard hitting to the brand, in true with the macho image of Thumps-up. The new fanta advertisement is distinctive in the fresh fun and energetic appear, primarily targeted at the teenage segment. The maaza advertisement uses the punch line 'you' 'he got the popular model Bippasa Basu. Along with theme advertising, Coca Cola India had also implemented a total of nine national consumer promotion for the Coca Cola in Sharjah. The company launched a contest where in thunder blast consumer promotion was executed nationally till the end of May, while the Fanta Alpenliebe joint promotion carried on for two months. The Limca 'Take It Easy Fun Massage' promotion had a holiday abroad as the bumper prize. These contests were in addition to the three promotion implemented nationally, namely the Coca Cola Howzzat 2nd inning promotion, a continuation of the Howzzat promotion the Limca-Wringley's joint promotion, and the Soccer mania contest revolving around the world cup football in France.
Along with national advertising and consumer promotion initiatives, the company also held a host of marketing events. These included Asha Bhosle live concerts. Alisha Chinoi live concerts, Daler Mehndi's live concerts and channel v live road show. The company has also held shows of various international artists. The six city channel v live shows, third one held in Chennai on June 5th 99, will travel to three more cities across the country with recording also being telecast later, giving Coca Cola a direct linkage with the teenage segment. The Goa concerts featured Shaan, Sagarika Mehnaz and Aqua flow, apart from the channesl V VI 's and the high light was international star shaggey. Asha Bhosle has already performed in Lucknow and Culcutta and is schedule to perform in five other cities. These initiates are excluding regional or localized events of the company, Such as sponsorship of college festival, local concerts, marketing fairs, and localized consumer promotion like Limca Nimba promotion recently in North India.
Apart from these Coca Cola India has host of tie-ups on television. In sports the two most visible ones are inside cricket on ESPN and World Cup hall of fame of star sports. On the movies front the company has tie UPS with Zee, Sony, Star Movies, ETV, Gemini and Udaya, Catering to a cross section of languages across the country on the music front the company has running sponsorships for over ten programs including two on six FM radio stations for the country. The music Tie-UPS on television can seen on channel V, Soni Music Asia, MTV, Vijay TV and sun TV, again enabling exposure to a wide cross section of languages across the country. Coke is launching an enthusiastic slogan with tum "JO CHAHO HO JAYE COCA COLA ENJOY" with the popular actor Hrithik Roshan and actress Aishwarya Rai and "Thumbs-up Taste of Thunder" with Salman Khan for long time, Coke stayed away from celebrity driven advertising once it too began to rely on hot celebrities the consumer started getting mixed signals. Hit moves Yaadein and Tum Bin also advertising of Coke. this was the best achievement of Coke to connecting with youth resulting sale with also be increase. In advertising slogan have played an important role in the success of products Since first new paper ad in 1886 which read Coca Cola Delicious Refreshing! Exhilaration! Invigorating! The company use advertising to trigger desire as often and in as many ways as possible. Throughout the year. Slogan for Coca Cola has always been memorable. Here are some highlights on slogans.
Role of S.G.A. In Advertising :- S.G.A. plays a significant and profitable role with the slogan in increasing the rate of return through the more sale of product. It has found that the inner and outer signage have covered over the market.
Inner Signage :- Hungler dungier, umbrella, sanpak-sheet, iron sheet. Outer Signage :- Poster display, Bill Board display, Banners, Glue sign. Board, Electrical Glow Sign Display and wall Painting. Including these signage, SGA consists the family fridge, Deep Freezer 2c/s, 10c/s (solid dom and visi) cooler EBC, box which provided to the retailer by the company after depositing the of chilling to the bottles. These SGA are also taken from advertising time to time just like recently Coke is launching a crown scratch coupon system in which file member, have to be tally by file consumer for getting or winning the price.
Current Status Of Coca-Cola Coca-Cola India will buyout bottler who do not want to be part of the bottle joint venture CEO and president of Coca Cola India, Mr. Donald Short-in his maiden interview to the press after taking over charge told that though the company had asked a lot its bottlers to partner it, many of them preferred to remain independent. Coca Cola has eight large consolidated bottlers around the world. Coke own equity stakes in them and allows these bottlers to expand gradually.
SALES PUSH BY COLLEGES & EATERIES Many eatery were easily influenced by the company which provides them with better facilities. There was a tendency to push the product of company which ever offered them with better schemes or benefits. If the company want to increase their sale in the region then company have to install their cool zones in every eatery and the supply of each brand must be there. In this region there must be at least of the company's cool zone because there are a large number of teenagers, who prefers cold drinks.
Advertising strategies and schemes to promote the sales:The importance of promotion can't be overlooked in the field of marketing. Pepsi seems to be out spending Coca Cola when it comes to the wall painting and signboards with blue color dominating the major places of the city. Advertising materials such as Glow signs, Signboards, wall painting, wall clocks, Racks, Fridge are some SGA's where Pepsi is spending a lot. So I would like to suggest that I company have to increase the expense on advertising materials to improve their sale.
Some owners said that we only on the schemes provided by the company, if they get good schemes they can push the sales of any brand. So I would like to suggest the company must ensure to start new schemes and create awareness for the product to improve the sales. Salesman at the delivery van tends to be inconsistent on certain matters like the concept of scheme & broken bottles. When dealing with the shop and the eatery owners some salesman supply the bottles according to the schemes & exchange the bottles, while some do not.
Company Representation: Many owners confirmed that company representatives "Don't come when called repeatedly" While some said that they comes once in 3 or 5 days. The company must ensure that the representatives do visit an outlet at least once or twice in a week to listen and to attend the complaints.
THE PRODUCTS OF THE COCA-COLA IN INDIA
ACCORDING TO THE FLOVOURS
BRANDS COKE THUMSUP LIMCA FANTA SPRITE MAAZA KINLEY
COLA A A
FLAVOURS LEMON ORANGE MANGO
A A A A
Note : 'A' Tends to available flavours.
ACCORDING TO THE SIZE BRANDS 200ml Coke A ThumsA up Limca Fanta Sprite Maaza Kinley water Kinley
A A A
300ml A A
500ml A A
Can A A
A A A
A A A
A A A
A A A
water NOTE :- 'A' Tends to available size.
1.5ltr A A
2 ltr A A A A A A A
OBJECTIVES OF THE STUDY.
TOOLS AND TECNIQUES USED.
GEOGRAPHICAL AREA COVERED.
THE RESEARCH DESIGN Describing the research design process as a sequential series of distinct or separate steps is inherently misleading. The steps in the design process interact and often occur simultaneously. We present the research design process as a distinct series of steps. These steps are shown in the table (1) and represent the general order in which decision are made in designing a research project.
Steps in the research design :1. Define the research problem. 2. Estimate the value of the information to be provided by the research. 3. Select the data collection method. 4. Evaluate the ethics of the research. 5. Select the measurement techniques. 6. Select the analytical approach. 7. Select the sample. 8. Prepare the research proposal.
The term methodology means how to collect the desired information in fulfill above predetermined objective. But to fulfill these objectives should follow certain process which is given below:1.
Identify and select problem
Analysis of problem
Preparing the Questionnaire.
Identify and select problem :The very first step in every problem solving process is too aware with the problem. The problem which is to be solved must identified that is all the aspect should be well known. Today in the progressive and competitive world, every organization wants to have what is the position in the market of the company and its product and the company wants to know what the attitude of the consumer about the product is.
Analysis of problem :After being well aware with the problem the second step is the analysis problem and it was done in our training in the form of survey of Agra city. The problem of retailers about the selling distribution of coca-cola only the solved by surveying the city.
Preparing the Questionnaire :Finally too prepare the questionnaire which gives us primary date. Two types of question are used in questionnaire.
Statistical tools used for analysis :Coding :- Coding is the procedure of classifying the answer to a question in two meaningful categories. Coding is necessary to carry out the subsequent operation of tabulating and analyzing data. Coding involves two steps. The first is specify the different categories or classes in to which the responses are to be classified. The second step is to allocate individual answer to different categories. In large survey, where mostly structured questionnaire are used to response categories are predetermined and are contained in the questionnaire themselves. The categories are in the form of the multiple choice answer to the questions.
Tabulation :The no. of tabulation will depend on the number of variables. While the number of respondent to a question will depend on the sample size. The tabulation may be done by hand or machine.
Editing :The task in date procuring is the editing. Editing can be undertaken both at the time when the field survey is in progress and when it has been completed. When I fill the information at the time of interview. I often used several observation due to the paucity of time. It is advisable for me to that I cam enter the purpose response or complete the partial answer.
Methods of presentation of results :1.
Best alternative for select the problem 1.
Survey Method (a)
OBJECTIVE OF THE STUDY
Which Company product do you sell ?
Which size of Coca-Cola do you purchase ?
How many crate do you purchase in a day from dealer ?
Are you satisfied with the distributor of your area ?
Which company gives you better services ?
Are you satisfied with the current pricing structure of the Coca-Cola ?
Do you get the proper scheme ?
AREA WISE SALES OF COCA-COLA COMPANY
KHEIA MODE 9500
SANJAY PLACE 46050
DAYAL BAG 23450
LOHA MANDI 24450
BHAGWAN TAKIES 42000
SIZE OF VISI-COOLER IN 250 OUTLETS.
IS PRE-SELLING GOOD OR THERE IS SOME GAP AT THE DELIVERY TIME OF THE PRODUCTS?
GOOD. SOME GAP.
HOW MUCH OUTLETS HAD THE VISIBILITY PRODUCTS?
LEADING BRAND OF THE COCA-COLA COMPANY ACCORDING TO THEIR PREFERENCES.
CHANNEL OF THE COCA-COLA COMPANY CONSIDERING SURVEYED (250) OULETS.
OULETS BELONGS TO WHICH CLASS MADE BY THE COMPANY?
FINDING FINDING FROM SURVEY Most of the retailers associates themselves with coke. Retailer love more crates of coke then Pepsi & other. Coke products sell more then Pepsi. Retailer if give equipment promises to stock more of coke is products. The demand is the market among the consumers is mostly skewed towards Coca Cola company's products. Both the companies are promotion schemes related material & SGA. Schemes do not reach to all the outlet holders honestly. Executive should visit the market accessional so they know the problem of retailer & try to salve them. Company should try do some thing new in case of 500ml in cases the demand in this must.
FINDING OF ADVERTISEMENT Mainly Coca Cola in AGRA is advertised through out door & than it advertise & some media of advertisement are as follows used by Coca Cola. P.O.P. Materials Dealer's Boards Hoardings. Glow Signs Umbrella Posters News Paper Wall Printing So presently the most power full source of aware ness is T.V. advertisement because 87% customer know the schemes by this source of media.
FINDING OF PRICE Price is charged in the market by the retailer Rs. 8 per bottle on the customer & at the cinema halls, restaurants & hotel charged higher price range Rs. 7 to 10 per bottle.
FINDING ON DISTRIBUTION Distribution is effective but leaders & route sales person behalf rudely some times they have developed a complement attitude. Complaints of retailers are not communicated to the company proper. Sales person do not take linkage & broken where as Pepsi change promptly.
REGRADING THE TRAINEES The trainees are taken as outsider the thinking should be removed this will the dissatisfaction & no dedication with in the summer trainees. Through I do agree with that the M.D. and D.G.M. (Sales & other head officers are mush busy what they are should give few moments from where 82
precious time has summer trainees to meet them this win motivate encourage & satisfies the summer trading & bring loyalty with in them. The summer trainees are working for the organization so they are as the family members of cared such as executive's expanses & their problem this will provide lose encouragement effectiveness & efficiency in this work.
METHODOLOGY USED IN SURVEY DATA COLLECTION A structure from which is primary in this sources of information was used in this research was designed in order to find out the various record information & also to fulfill the objective of the project. All form filled by myself taking a part of on English some question were framed in the forms in directly so as to gather the information which is would have been asked directly might have offered the retailers so that had to be frame indirectly.
SEMPLE SELECTION AREA OF STUDY I choose the routes to know the market condition of the Coca Cola that what are the real position of Coca Cola in the market. The choose route are give below:1. AGRA 1.
NAI KI MANDI
SAMPLE SIZE After these areas for completing my project, I had decided to cover these areas fully, I had decided & tried to show the reaction of retailers although I have covered 25% outlets but the sales figure given were approximation since it was not possible for the retailers to exact figures but all this does not shift the from, the influences that have been drawn out.
COKE VS. PEPSI S16 70% Rs 250 Cr. Rs. 2500 Cr. 140 NIL 53 1500 Rs. 125 Cr. N.A.
Turnover Beverage sale Int Sales as% of total sales Total investment in India New investment's No. of Employees No. of owned bottling plants No. of Franchisee No. of Fountains Total investment by bottlers New Plants Planed
S 28 bn S 10 32% Rs. 500 Cr. Rs. 300 Cr. 2400 11 15 4000 N.A. 6
Also Coke was able to sew up a deal with Chauhan's parle with its 60% its 60% market share and turn into market leader overnight. Once set free, Pepsi too has gone about buying local bottlers and brands like Duke's but who's cloning home? As Pepsi took a position in bottling realizing that Indian bottlers just didn't have the ability or vision to upgrade capacity. Coke also has woken up to this reality rather than running its own plants. Both companies run export divisions having given an undertaking to the Government that they will more them cover the dollars they spend in imports, but see India as a low cost sourcing base for there respective systems. While Coke is merchant exporter, buying from local suppliers and shipping out Agro commodities like green coffee, bottle and crates, Coca-Cola trading Co. in Atlanta, Pepsi has put money on the ground (Rs. 75 corer) by setting up EOU to manufacture performs in Channel in collaboration with India organic export director Aghiram Seth say that they've just begin to ship out concentrate to the CIS companies and are hoping for more orders. Curiously both companies had NRI CEOs at the start-up stage, whose departure was controversial Coke's Raja has left the company altogether and joined Iridium after being given shift for the Parle controversy. Pepsi's Ramesh Vangle was 85
posted to the snack-food operation in the far east after Pepsi has tacked
losses, the new bosses at both companies knuckles down to focusing the business, shuffles top management pack and are said to be tough masters. Sinha, with his strong connections in government quarters, is an excellent tactician. Nicholas has the reputation of being a good listener, as some one who known clearly where he want to take the business. Who will win over the other? Pepsi no doubt his scored but the was at the time when Coke was at sixes and seven. Industry sources say that this year, Coke will be seen in its true form, highly aggressive, moving in for the kill. But Pepsi is unfazed. It has just realized ads. Taking a swipe at Coke's status as the official about it 'the wars rage on.
It's a defining moment in the world's most ruthless corporate war. They both sell sugar water, but Coca cola and Pepsi Co never wee as similar as most people believed. While Pepsi co. diversified increasingly into restaurant, snacks, coke focused on soft drinks.
Coca-Cola and Pepsi aren't simply unlike, they are mirror image of each other. Coke generates 71% of its revenues in International market; Pepsi Co. derivers 71% from US. Coke earn more than 80% of its income aboard; Pepsi Co. earn over 80% at home. All of coke's profit come from beverage. Its New York rival is highly diversified. Through Pepsi is twice as profitable as Pepsi Co. has a work force of 33,000. whereas Pepsi employees 4,80,000 peoples.
MARKET SHARE OF COKE & PEPSI IN TOP TEN MARKET IN WORLD TOP TEN MARKETS UNITED STATES OF AMERICA MEXIO JAPAN
COKE 42% 61% 34% 87
PEPSI 31% 21% 5%
BRAZIL EAST CENTRAL EUROPE GERMANY CANADA MIDDLE EAST CHINA BRITAN
51% 40% 56% 37% 23% 20% 32%
10% 21% 5% 34% 33% 10% 12%
REAL THINGS REAL FORMULA ANCHOR BOTTILER CONCEPT Coca-Cola has eight large, consolidated bottlers around the world. Coke own equity stakes in them and allows these bottles to expand gradually. Fraser neale (F&N), Singapore, Swire Pacific Group, Hond Kond, Coca-Cola enterprises, USA and Coca-Cola Amatil Ltd, Australia are among them. COCA-COLA AND QUALITY 28th January 1997 saw the launch of QA2000 in India at a novel and interesting conference at Leela Kempenski, Mumbai, Attended by over 150 delegates from bottling operation of the Coca Cola systems in India.
The speaker put forth the three quality principle of QA2000, to ensure that the Coca Cola company. is the symbol quality around world. Delivers continued customers and consumer satisfaction. Operated as a responsible corporate citizen. Peter Addyman, Director technical, Coca Cola India, unciviled the all equation "Q=SMC": the explanation is: Quality=Satisfy more customers and sell more Coca Cola products. How can improvement of qualities in all areas help coca Cola sell more products. In the market place, all selling activities concentrate on target, the consumer's 88
preference. The consumers, While making a decision on whether or not to buy Coke's product get influence by the product and the company image. Product quality of course is the most important factor in the decision making process. Besides the products, many other things projects the image like: Packing Bottling Vehicles Outdoor Advertisements Route Sales Persons Merchandise activities People at desk The above point should be understood very well in how they help in projection of image and should be improved continuously.
RECOMMENDATIONS If you are complacent for even a few day in as volatile market as soft drinks you are out of competition. Especially in a competitive market place as AGRA and India as a whole where canny adversaries never let a slip pass them by that's exactly what is happening to one of the soft drink Coca Cola in AGRA. After entering the market aggressively in early time after re-entering in India Coca Cola is now sitting back and expecting the sale to happen without smarting up the things. Coca Cola sales depends a lot on its brand name and less on it marketing tactics and strategy. Its marketing division in AGRA is said to be working but not upto the standards expected of them. It can't afford to let the things happen naturally because of aggressive marketing and advertising camping by the competitor Pepsi. Situation in AGRA is such that market share is slipping from that hand of Coca Cola towards Pepsi. Coca Cola should become widely awake and alert. If Coca Cola is going to rise to the occasion and accept the challenges then Pepsi can easily be relegated to the single digit market share in AGRA. Pepsi getting sales less because of its brand image and more because of its strong distribution channel and hearing of retailer complaint (it is a type of business). So Coca Cola shouldn't be effected by market myopia otherwise in coming future it will have hard even to maintain its present market share in AGRA.
Coca Cola should come out of hand shell hibemation and should try to grab the share of the consumer's mind that it had served up to its competitor by default. Brand should be synchronized with localized events and traditions. Instead of harping on its global lineage, it should try to plug into ethnic festivals, use the vernacular in different parts of city and blend into the local fabric. On the ground activity is critical company should keep generating activities and increase consumption opportunities. The idea is to dance the consumer. The some of the action expected on part of coke is as follows.
LOCAL ACTION TO do all these both national campaign as well as local campaigns be launched. Coke should to hire local people who have experience in selling consumer products. And shouldn't wholly rely on outside always. It should try to create a bond with the customers through small but high impact events. It should try to endear itself with young people the largest consumer of soft drinks. Coke should try to sustain campaign. The campaign shouldn't be occasional burst of activities.
EMPOWERMENT Coke should empower its AGRA unit with flexibility. Every manager and sales person should have the authority to take whatever step he or she feels will make consumers aware of the brand and increase its consumption.
For example in AGRA sponsoring of Quality competition in the areas of Muslims and a free sip of the coke in the pandal of KRISHANA JANMASTHAMI for Hindus might help the brand. The fact that Coke had never adopted that track India. All coke should do is to give people budgets within when to work. No question should be asked for what they do. The company should be performance oriented and should ask for results. The company should have a lot of confidence in its sales force and generally this type of attitude flows from the top.
CHANNEL MANAGEMENT Coca-Cola's conflicts with its bottlers should be minimized and a relationship should be developed with its bottlers that enables it to work in tandem with them Coca Cola conflicts with its bottlers have finally settled down to a pattern that its global experience understands. Coca Cola India is floating two subsidiaries, where Coca and Hindustan Cola, which will act as holding companies for most of its bottling operation. CEO Mr. Donald W. Short has given and option of total sell out of its bottlers if they are unwilling to from a joint venture and has agreed to get the appraisal done by the third party. The things should out soon. Finally its fact that AGRA loves Coke and has got more than half regions soft drinks market. So it needs to get going with its brand image and leave Pepsi more for behind in the fizzy in AGRA.
SUGGESTIONS Doing a survey on market provides a lot of insight into the dynamics of the market place and with it valuable insights were also into the psyche of owner. SUPPLY The demand of Thumps up far the supply especially in case of 200ml and 500ml bottles. Few shop owners claimed that many a times no supply is made for two or more days. Some of the brands are in great demand but the supply is not appropriate according to the demand. Sometimes the delivery vans of coca-cola starts late from the distributor point and that of rivals reach early. So, eateries which generally serve soft drinks in a glass buy the soft drinks from the delivery van which arrives first.
SUGGESSTION TO IMPROVE SALE There is great of supply in interior areas as van can not approach For this there is a need to open a SUB AGNECY in the area. The sub agency will supply in the interior areas through three wheelers and other mode. This is a great advantage. The second advantage of opening sub agency is that it will reduce the much work load of parent agency and can over near by areas effectively and efficiently. A combination strategy is more useful then the isolated efforts to carry on entire push or pull strategy. By aiming at two The marketer aims at benefiting the resellers and attracting the personal selling which precedes the pull strategy i.e. consumer demand has already been created. 1.
Every one in trade in putting up good displays.
The better your displays, the more customers buy.
You get more customers more sales, more profit. This is especially true soft drinks. Where more then 70% sales a re made on impulse.
Must maintain the display.
Every Grocery shop must have a "your cool zone section".
ALL MERCHANDISING MATERIAL must be displayed in this section in the store.
Full stock of all brands flavors packs should be available.
Your relationship with retailer is not just about expanding the business together but he should be integral part of the company.
Availability should be checked time to time.
Increase the quantity of sales generating assets.
It is quite easy to see or observe that today soft drink market is very fast and it is getting more & more tougher so if you are complacent for even if you days in as volatile market place like Agra, or whole of India. That exactly what is happening to the market position of coca cola in these particular market coca cola sales strategy. As for as it is considered with the market strategy of coca in AGRA. We could say that its working is hot up to standardized. Finally I will want to suggest that there are so many possibility in coming years that many companies will launches thus in product like as at present Hindustan liver ltd. (well established company) is launching the soft drink (namely Lipton ice tea) and supplying to island. Due to the high cost of manufacturing this products can not be consume in India at high price. So it is also be possible that this products may be sold at lower price by minimizing the cost of manufacture in India. Thus both Cola companies will have to face this problem.
CONCLUSION The comprehensive and the detailed study beverage industries are based on the market survey. Data collection and analysis of potential demand and future propose of beverage in the AGRA region. The data collection is so as determine the market share, sales, volume market segmentation and there contribution to total sales. The study shows that Thumps up captures most of the cold drinks market share as it is the old and trusted name in Indian market Limca, Maaza, Sprite were doing well in these sectors where as the performance of the coke wad very poor. It clearly shows that to lift the market of coke brand more special schemes are required along with few new improved marketing plans for it. Although the presence of high percentage of pesticides found in the cold drinks had affected the market of cold drink a little bit, hut if that might have been the case then sales of pepsi would also had gone down. It was also seen that supply of coke is also good Pepsi. Although scheme launched on coke were less in no or frequency than the scheme launched by Pepsi on its products. Distribution channels are needed to be maintained properly with out any delays in shooting out the troubles. More emphasizes should there on right time delivery.
LIMITATION No method is 100% perfect, every method have its own advantages and limitation. The limitation felt by me during the field work are as follows:
Shortage of time :- The time duration of the survey was very short that was of six weeks and the size of the sample of the retailers and shops was very large. So the collection of the data in this duration was very difficult.
Large number of sample :- The sample was very large in my survey. The size of the sample was 120 plus retailers and shops. It is very tough task to collect the data from each of them.
Weather :- The summer training time period of 10th June 2005 to 15 August 2003, when monsoon had already arrived so it is very difficult to collect the data in rainy day.
Segment Covered: 1. Hotel 2. Restaurant 3. Pan shop 4. Sweet shop 5. P.C.O. Center 6. Canteen 7. Dhaba 8. Fruit store 9. General store 10. Confectionary 11. Tea shop 12. Lassi & Cold Drink Center
QUESTIONNAIRE (For selling and distribution) Q.1
Which company product do you sell? Coca Cola (
Pepsi ( )
Which category of coca cola do you purchase? 200ml (
2 liter ()
How many crates do you purchase in a day? ............................................................................................................
How many cartoons of pet do you purchase in a day? 500ml (
Pepsi ( )
Are you satisfied with the current pricing structure of Coca Cola? Yes (
Which company gives you better service? Coca Cola (
2 liter ()
Are you satisfied with the distributor of your area? Yes (
What is the frequency of supply vehicle visit at your shop? (a)
Once in a day (
Once in two days
Once in three days
do you get the required brand from the supply van? Always (
Do you recognize your company person? Distributor
By Face By Name Q.11
Do you get proper scheme? Regular (
Some time (
Your suggestions for improvement of sales and distribution.
...................................................................................................................... ...................................................................................................................... Q.13